Gov. Scott Walker may be poised to reorganize job training

The budget proposal that Gov. Scott Walker introduces next month will signal whether Madison is prepared to tackle one of the thorniest obstacles confronting the state's economy: reforming and funding training programs for job openings that currently go unfilled for lack of qualified applicants.

"We understand this will be a major issue for the Legislature and the governor," said Bill McCoshen, a politically connected Madison consultant who also heads Competitive Wisconsin Inc., an economic development group.

The state's skills mismatch - which leaves 35,000 jobs currently unfilled even at a time of chronic high unemployment - has become an economic stumbling block in Wisconsin, where factory and office managers blame their inability to expand on a lack of qualified job candidates.

The problem has lingered for years, sparking debate and policy papers but seldom triggering meaningful action.

McCoshen, who served as secretary of the state Department of Commerce under Republican Gov. Tommy Thompson, said he expects that Walker's proposed budget for the first time will include state taxpayer money for job-training programs. Currently, the state Department of Workforce Development channels funds from a slew of federal programs into an array of different state initiatives, which often duplicate each other.

Competitive Wisconsin, which last fall released its own study of the skills paradox, calls for $100 million in state money - a figure chosen so Wisconsin could catch up with Minnesota, which spends $87 million in state money annually on its jobs programs, not including federal dollars.

Speaking Tuesday at a conference in Milwaukee sponsored by Competitive Wisconsin, McCoshen also said that Madison's political leadership finally recognizes that past approaches have failed. He said he sees a consensus that Wisconsin needs to create a high-level body that will analyze and revamp existing training programs, aiming to connect them with the present and future needs of state industry. McCoshen calls the new body a state "talent council."

State ranks low

The issue of Wisconsin's competitiveness took on new urgency this week after the latest government data showed that Wisconsin ranked 42 out of the 50 states in private-sector job creation.

Competitive Wisconsin recommends combining all workforce development programs and economic development programs under one roof, similar to what Minnesota has been doing for years, McCoshen said. That approach, if Walker follows it, could trigger a turf war in Madison, meaning that much of the funding and authority of the Department of Workforce Development would shift into the state Economic Development Corp.

"Minnesota has it all in one spot; it's a one-stop shop for business," McCoshen said.

McCoshen acknowledges his close ties to the Walker administration. A 2010 report from Competitive Wisconsin prompted Walker to restructure the old state Commerce Department shortly after he took office in January 2011. That led to the creation of the Wisconsin Economic Development Corp., which took over most of the state's economic development functions.

For weeks, Walker has signaled that workforce development will be one of five top priorities in the upcoming budget, but the governor has been sketchy so far on details. The other four are: job creation; reforming government; reforming education; and improving roads and bridges. Walker will introduce the proposed two-year budget in mid-February.

"Details related to the budget are still being worked out," said Walker spokesman Cullen Werwie.

State Sen. Alberta Darling (R-River Hills) said she also expects Walker to include funding to close the skills gap, but she couldn't predict how much. Darling, who also spoke at Tuesday's conference, co-chairs the Joint Finance Committee, the most powerful body within the Legislature.

Darling said she likes the idea of creating a talent council. And she predicts a legislative skirmish over the budget if funds need to be reallocated for a new set of priorities.

Darling called for a wholesale restructuring of the curriculum in the state education system. "While our tech schools and our universities are really excellent, they are not really hitting the mark," she said. "Nobody wants to talk about that. Nobody wants to bad-mouth education."

She also endorsed an idea that the Department of Workforce Development previously has signaled: creating an online data base to help match the skills of those collecting unemployment insurance with job openings, one with a predictive algorithm that will help technical schools and universities figure out what skills are expected to be in demand in a dynamic economy in time to educate a generation of workers.

Action over job training is long overdue, said Ryan Murray, the chief operating officer at the Economic Development Corp.

"Every manufacturer in the state will tell you they have open jobs," Murray said. "And that's because we didn't have this conversation 10 years ago."

About John Schmid

John Schmid covers economics, business and other topics for the Journal Sentinel.